Investing in bluechip funds is an appealing choice for risk-averse investors looking for relatively stable growth. Bluechip funds are equity mutual funds that invest primarily in well-established, large-cap companies, known for their robust financial health and market dominance.
This article provides a detailed comparison of two popular bluechip funds in India—SBI Bluechip Fund and Axis Bluechip Fund—covering their basic details, portfolio construction, returns, costs, and more.
These companies tend to weather market volatility better than smaller-cap stocks, making bluechip funds a favorite among conservative and long-term investors.
Understanding Bluechip Funds
Bluechip funds are designed to offer steady, long-term growth by focusing on large-cap stocks—companies that are ranked from 1st to 100th in terms of market capitalization. These companies, like those in the Nifty 50 or Sensex indices, are leaders in their industries and tend to have a solid track record of delivering returns, even during market downturns. While not entirely immune to volatility, blue chip funds are typically less risky than small- and mid-cap funds, making them a core option for balanced portfolios.
SBI Bluechip Fund vs Axis Bluechip Fund Overview
| Aspect | SBI Blue chip Fund | Axis Bluechip Fund |
| AUM | ₹53,276 Cr | ₹36,109 Cr |
| Category | Equity-Large Cap | Equity-Large Cap |
| Expense Ratio | 1.48% | 1.55% |
| AMC | SBI Mutual Fund | Axis Mutual Fund |
| Launch year | 14-Feb-2006 | 05-Jan-2010 |
| 1yr Return | 28.16% | 27.84% |
| 3yr Return | 12.56% | 7.09% |
| 5yr Return | 17.21% | 13.53% |
| 10yr Return | 13.74% | 12.49% |
| Minimum SIP Amount | ₹500 | ₹100 |
| Minimum Lumpsum Amount | ₹5000 | ₹1000 |
Portfolio Allocation
SBI Bluechip Fund
- Sector Allocation: SBI Blue chip Fund maintains a well-diversified portfolio with a slight focus on financial services, technology, and energy sectors. Financials hold the largest allocation, consistent with other bluechip funds, aiming for steady growth through established industry leaders.
- Number of Stocks: The fund holds around 55-60 stocks at any time, balancing concentration in top holdings with broader diversification across sectors. This approach offers stability and is well-aligned with the fund’s conservative investment philosophy.
Axis Bluechip Fund
- Sector Allocation: The Axis Bluechip Fund leans more heavily on financials and technology, along with selective exposure to healthcare and consumer goods. Axis Bluechip Fund tends to emphasize growth stocks within the large-cap category, favoring sectors that show consistent earnings potential.
- Number of Stocks: With a relatively concentrated portfolio of around 30-40 stocks, Axis Bluechip Fund takes a focused approach, which can lead to slightly higher returns but may carry higher risk compared to a more diversified bluechip fund.
| Fund | No. Of Stocks | Large-cap(%) | Mid-cap(%) | Small Cap(%) |
| SBI Blue chip Fund | 46 | 90.33% | 9.67% | – |
| Axis Blue chip Fund | 54 | 100% | – | – |
Returns
Performance Insight: Axis Blue chip Fund has marginally outperformed SBI Blue chip Fund over recent years, likely due to its concentrated growth-oriented portfolio. However, both funds have delivered competitive returns, with Axis’s approach benefitting slightly from tech and financial stock allocations.
Cost Structure
Both the funds have a similar expense ratio which is around 1.5% for the regular plan. This covers management, transactions, distribution, and other costs associated with the operations of Mutual Funds. The funds with higher AUM have a lesser expense ratio while the ones with lower AUM have higher charges.
Risk and Volatility
- SBI Bluechip Fund: Tends to be less volatile due to a higher number of stocks and a broader sector allocation. It offers a balanced approach with relatively lower risk, which can be appealing for conservative investors.
- Axis Bluechip Fund: With a more concentrated portfolio, Axis Bluechip Fund carries slightly higher risk. However, its focused strategy also enables higher potential returns when market conditions are favorable.
Final Thoughts
- For Risk-Averse Investors: SBI Bluechip Fund might be a better option, as it offers a wider spread of stocks and sectors, aligning well with conservative investment objectives.
- For Growth-Oriented Investors: Axis Bluechip Fund could be ideal due to its focus on growth stocks and higher conviction investments, which have historically delivered stronger returns, especially in bullish market conditions.
Both funds provide excellent large-cap exposure, but their differences in portfolio concentration, sector preference, and risk profile can guide investors based on their individual financial goals and risk tolerance.
Suggested Read – Motilal Oswal Multicap Fund vs SBI Flexi Cap Fund: A Detailed Comparison
